law

price fixing

Price fixing is an agreement among competitors to set, raise, or stabilize prices or fees rather than letting each firm set its own. In real estate it most often refers to competing brokerages agreeing on commission rates. Price fixing violates federal antitrust law, specifically the Sherman Antitrust Act, and can lead to heavy fines and imprisonment. Commission rates must be negotiable between each broker and client.

Exam tip: Even casually discussing commission rates with agents from competing firms can be evidence of price fixing. Brokers within the same firm may set their own company policy.
Example: Two rival brokers agree at a networking lunch that neither will list homes for less than 6%. That agreement is illegal price fixing.

1. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Answer & explanation

Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Related terms & state variants

antitrust group boycott market allocation tie-in arrangement

Sources

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Last verified: 2026-10-23